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Washington – Ballot Initiative Authorizing Taxation of Marijuana

SALT Report 1804 – The Washington Secretary of State has certified a ballot initiative that proposes to legalize and tax all sales of marijuana in the state. According to the terms of the measure all sales of marijuana will be taxable as follows:

Sales by a marijuana producer to a marijuana processor or other licensed producer will be subject to a 25% tax

Sales of marijuana by a processor to a retailer as well as all retail sales of marijuana will be subject to an additional 25% tax,

The 25% tax imposed on sales of marijuana is in addition to any applicable state and local sales and use taxes, and

The 25% tax will be considered part of the total retail sales price used to calculate the state and local sales and use taxes

Additionally, all marijuana producers, processors, or retailers will be required to register and be licensed by the state. The license application fee will be $250 and the annual renewal fee will be $1,000.